Today he welcomed the Commonwealth contribution, despite it falling short of his request.

"We are positive in terms of what has happened with health," he said.

"Longer term, there remain challenges."

Differences remain over schools funding

West Australian Premier Colin Barnett said funding health was the biggest challenge right across Australia, though highlighted concerns about future funding for schools.

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"We need to look very seriously at defining responsibilities better between the Commonwealth and the states," he said.

"I hope we can have the discussion over the next couple of years and look at facts rather than look at what might be perceived problems."

ACT Chief Minister Andrew Barr also expressed his disappointment on the unresolved issue of schools funding.

"If there is going to be a fundamental change in the Federation, and who has responsibility for education, we can't separate government and non-government schools," he said.

"That's a line in the sand for the ACT. In the simplest of terms, if the states and territories are going to take responsibility for school education, then it should be all schools. We shouldn't have this split between Commonwealth funding."

South Australian Premier Jay Weatherill said states were yet to see a response on schools, saying that although there was "unfinished business", important progress was made.

'We've got to do more' on family violence: Palaszczuk

Victorian Premier Daniel Andrews said leaders "could not dance around" the cuts made by the former Abbott government in 2014, but agreed the hospital funding agreement was significant.

"Whilst an agreement today is a positive, there's no getting away from or getting around or politely explaining away the fact that many billions of dollars will not be flowing to hospitals in my state and hospitals right across the nation as a result of decisions made in the 2014 budget," he said.

But Mr Andrews did praise the work done on domestic and family violence, labelling today's meeting as "productive".

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